Zambia Pushes Ahead with Reforms to Strengthen Economy
Finance and National Planning Minister, Dr. Situmbeko Musokotwane, MP, has reiterated the Government’s dedication to driving reforms in public financial management, fiscal transparency, and tax administration.
Speaking on the May 2025 budget implementation report, Minister Musokotwane described the external environment as “challenging” due to persistent global policy uncertainty.
“As Government, we will continue on the reform path to build resilience, create fiscal space, and crowd in private investment,” he affirmed. The Minister highlighted key sectors—energy, mining, agriculture, manufacturing, tourism, and transport and logistics—as central to this reform agenda.
Dr. Musokotwane emphasized that structural reforms in the energy sector, enhanced public procurement transparency, and levelling the playing field for private-sector-led growth are vital to creating employment opportunities for Zambia’s growing youth population.
He expressed confidence in the economy’s resilience, citing positive momentum from agriculture and improved mining productivity.
Responding to emerging spending pressures from 2025 debt service obligations and social-sector needs, the Minister stressed the importance of domestic revenue mobilisation to sustain fiscal and debt stability.
He announced that the Zambia Revenue Authority (ZRA) now requires vendors supplying public institutions to register their Tax Payer Identification Numbers (TPIN), thanks to integration between the Integrated Financial Management Information System (IFMIS) and ZRA’s Tax Online System. “Revenue leakages via this channel are now sealed,” he noted.
The Ministry’s May 2025 budget execution included the release of K15.8 billion for public service delivery: K5.5 billion went toward debt servicing, K5.3 billion for the public service wage bill, K1.8 billion for transfers and subsidies, K1.9 billion for general operations, and K1.3 billion for capital expenditure.
Key allocations included K1.4 million for Grant Aided Institutions, K312.4 million for pension arrears, K98 million to the Food Reserve Agency, K472.4 million for medical supplies, and K542.1 million for road infrastructure. The Government also disbursed funds for airport construction, school infrastructure, rural electrification, and voter registration preparations.
Minister Musokotwane announced that Zambia has reached a staff-level agreement with the IMF for the Fifth Review under the Extended Credit Facility, which, pending final approval, could unlock approximately SDR 139.9 million (about US$194 million) in new financing.
He concluded by affirming the Government’s dual commitment to budget integrity and ongoing reforms. He also announced consultations for the 2026 National Budget, with a green paper expected by year-end.
